Xinjiang cotton purchase and sales have basically stagnated, and post-holiday shipments are worth looking forward to
Correspondent from China Cotton Network: According to the survey, the current inquiry, transaction and delivery of lint cotton in Xinjiang have basically been at a standstill. Some mainland cotton textile mills have stayed behind. The purchasing staff also set off to return. Cotton textile mills in Shihezi, Kuitun, Aksu and other places are still operating at full capacity. Although the holidays are later than those in the mainland, most of them stopped purchasing raw materials a week ago.
Some supervision warehouses in Xinjiang reported that since mid-January, not only the number of lint cotton scheduled to be put into the warehouse has dropped significantly, but also the number of cotton applied for truck transportation out of the warehouse has also dropped significantly. Since the Spring Festival is only about a week away, Xinjiang’s Most ginners and cotton companies have stopped quoting and selling, and there is a strong atmosphere of onlookers on Zheng cotton and spot listings.
An international cotton merchant said that although Zheng Cotton’s main market price is still quoted every day, there are only a few fabric factories and middlemen who inquire. Taking into account the Spring Festival, the next round of restocking by textile companies is expected to be after mid-February. Therefore, from mid-January to mid-February, cotton in Xinjiang is mainly transported by rail (mainly shipped to mainland futures delivery warehouses, which can be delivered Warehouse receipts can also be used to close short orders and sell spot goods).
A large cotton company said that as of January 10, it had purchased about 15,000 tons of Xinjiang cotton (100% hedging). However, due to the sharp fall of Zheng cotton in mid-to-late December, the spot price fell, so While closing positions, they sell lint cotton at a price 100-200 yuan/ton lower than the market price. Currently, there are less than 7,000 tons of Xinjiang cotton left.
From a statistical point of view, Xinjiang’s total cotton shipments from January to December 2016 were 2.494 million tons, a year-on-year decrease of 40%. Industry analysis shows that the first reason for the decrease is that the shipments of state-owned cotton reserves in 2016 were basically At the end of the year, commercial cotton accounts for the absolute majority of shipments; secondly, the consumption capacity of cotton in Xinjiang has increased significantly, and the quantity available for export to Xinjiang has decreased; considering that the total cotton output in Xinjiang will exceed 4 million tons this year, and the Xinjiang Xinjiang cotton contract sales progress is “leading the way” Affected by factors such as the supply structure of the mainland and other factors, Xinjiang cotton shipments will continue to gain momentum from February to March.
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